UFG Russia Alternative

Fund Type

UFG Russia Alternative Fund Ltd. was launched 1 November 2006 and is a Cayman Islands-exempted company. The fund is denominated in US dollars.

Fund Objective

The investment objective of the Fund (small cap/pre-IPO) is to achieve long-term capital growth by investing in equity securities not actively traded in the markets of the Russian Federation and in equity securities with no official listing but with significant share price appreciation potential.

Investment Strategy

• —  The Fund will generally seek to invest in the following:

–  companies that are expected to seek a listing on a stock exchange within approximately one to two years; –  companies that are listed on the RTS or MICEX with a free-float market capitalization of less than US$1 billion;

• —  In general the Fund will not seek to take positions that would give it ownership of more than 5% of a company’s share capital. However, the Fund may take substantial positions (more than 25% of share capital) in companies whose shares the Manager believes are significantly undervalued due to exceptional circumstances.
• — The Fund intends to focus on a broad variety of industrial sectors including, but not limited to, retail services and trade, banking and insurance, consumer goods, natural resources and communications.
• — Not more than 15% of the Fund’s net asset value will be invested in any single portfolio company (determined at the time of investment).

Legal Structure

• —  The Manager: UFG Advisors Limited, a company incorporated under the laws of Bermuda, specializing in investments in Russia
• —  Independent Auditors: PricewaterhouseCoopers, Cayman Islands, British West Indies
• —  Cayman Counsel to the Fund: Ogier, Grand Cayman, Cayman Islands, British West Indies
• —  U.S. Counsel to the Fund: Akin, Gump, Strauss, Hauer & Field, LLP New York, New York
• —  Administrator: Delphi Management Limited, Hamilton, Bermuda
• —  Custody: Credit Suisse (London)

Fees and Procedures

Management Fee — 2 % p.a.

Performance Fee — 20%

Minimum Investment — US $500,000

Subscriptions: monthly, on the first business day of each calendar month

Redemptions: semi - annually following 1 year lock up period with at least 90 calendar days written notice prior to the proposed redemption date